Edward C. Norton, PhD

Professor, Department of Health Management and Policy
Professor, Department of Economics
Research Affiliate, Population Studies Center
Research Associate, National Bureau of Economic Research


Prof. Edward Norton is an economist and professor in the departments of Health Management & Policy and in Economics. Before coming to the U-M, Prof. Norton taught at UNC-Chapel Hill and at Harvard Medical School. He earned his PhD in economics from MIT in 1990.

Prof. Norton's research interests span a wide range of topics in health economics and applied econometrics. He is known for his work on nursing home quality of care, pay-for-performance, and applied econometrics. Recently, his research has covered diverse subjects including the economic consequences of obesity, health care report cards, and the use of biomarkers in social science research. His articles on interaction terms in logit and probit models changed how researchers estimate and interpret econometric models with interaction terms, a common issue.

Prof. Norton's research often uses advanced econometric methods, including log transformation and two-part expenditure models, interaction terms in nonlinear models, nonlinear simultaneous equations, dynamic panel data models, and Markov models.

In 2003, UNC-Chapel Hill awarded Prof. Norton the Phillip and Ruth Hettleman Prize for Artistic and Scholarly Achievement by Young Faculty. Prof. Norton was the Director of the Robert Wood Johnson Foundation Scholars in Health Policy Research at the University of Michigan.


Improving Cost-Benefit Analysis of Tobacco Regulation 5R03CA182990 (Norton, PI) 09/12/2013 - 08/31/2016 National Institute on Aging.  We propose to address the question: how should the FDA estimate the value of smokers' lost consumer surplus—that is, foregone enjoyment—associated with regulation-induced changes in smoking?

Scholars in Health Policy Research Program (Norton, PI) Robert Wood Johnson Foundation. This is an interdisciplinary post-doctoral training program for recent PhDs in economics, political science and sociology in their early careers.  During their two years in the program, Scholars participate in an integrative 6-week seminar on health and health care issues, a research seminar series, individual mentoring, and independent research and scholarship with a focus on health policy.

MVC Michigan Value Collaborative (Miller, PI) Blue Cross Blue Shield Foundation of Michigan. To work collaboratively with Michigan hospitals to improve cost and quality of care.

Published Articles or Reviews

Norton, E.C. 1992. “Incentive Regulation of Nursing Homes.”  Journal of Health Economics 11(2):105–128.

Norton, E.C., and D.O. Staiger. 1994. “How Hospital Ownership Affects Access to Care for the Uninsured.” RAND Journal of Economics 25(1):171–185.

Ai, C. and E.C. Norton.  2003. “Interaction Terms in Logit and Probit Models.” Economics Letters 80(1):123-129.

Norton, E.C., H. Wang, and C. Ai. 2004. “Computing interaction effects and standard errors in logit and probit models.” The Stata Journal 4(2):154-167.

Van Houtven, C.H. and E.C. Norton.  2004. “Informal care and health care use of older adults.” Journal of Health Economics 23(6):1159-1180.

Kleinman, L.C. and E.C. Norton. 2009. “What’s the Risk? A simple approach for estimating adjusted risk ratios from nonlinear models including logistic regression.” Health Services Research 44(1):288-302. PMCID: PMC2669627.

Yang, Z., D.B. Gilleskie, and E.C. Norton. 2009. “Health Insurance, Medical Care, and Health Outcomes: A Model of Elderly Health Dynamics.” Journal of Human Resources 44(1):47-114. A previous version appeared as “Prescription Drugs, Medical Care, and Health Outcomes: A Model of Elderly Health Dynamics.” NBER Working Paper #10964.

Han, E., E.C. Norton, and S.C. Stearns. 2009. “Weight and wages: Fat versus lean paychecks” Health Economics 18(5):535-548.

Cawley, J., E. Han, and E.C. Norton. 2011. “The validity of genes related to neurotransmitters as instrumental variables.” Health Economics 20(8):884–888.

Werner, R.M., E.C. Norton, R.T. Konetzka, D. Polsky. 2012. “Do consumers respond to publicly reported quality information? Evidence from nursing homes.” Journal of Health Economics 31(1):50–61.

Tan, H.J., E.C. Norton, Z. Ye, K.S. Hafez, J.L. Gore, D.C. Miller. 2012. “Long-term survival following partial vs radical nephrectomy among older patients with early-stage kidney cancer.” Journal of the American Medical Association 307(15):1629–1635. PMCID: PMC3864575.

Norton, E.C., M.M. Miller, J. Wang, K. Coyne, L.C. Kleinman. 2012. “Rank reversal in indirect comparisons.” Value in Health 15(8):1137-1140. PMCID: PMC3527821.

Do, Y.K., E.C. Norton, S.C. Stearns, C.H. Van Houtven. 2015. “Informal care and caregiver’s health” Health Economics 24(2):224-237. A previous version appeared as NBER Working paper #19142. PMCID: PMC4201633.

Belotti, F., P. Deb, W.G. Manning, E.C. Norton. 2015. “twopm: Two-part models.” Stata Journal 15(1):3-20.

Rahman, M., E.C. Norton, D.C. Grabowski. 2016. “Do hospital-owned skilled nursing facilities provide better post-acute care quality?” Journal of Health Economics 50:36-46. A previous version appeared as NBER Working paper #22515.  PMCID:  PMC5127756.

Levy, H., E.C. Norton, J.A. Smith. Forthcoming 2017. “Tobacco regulation and cost-benefit analysis: How should we value foregone consumer surplus?” American Journal of Health Economics.  A previous version appeared as NBER Working paper #22471.

Norton, E.C. and B.E. Dowd. Forthcoming 2017. “Log odds and the interpretation of logit models.” Health Services Research.

Kim, H. and E.C. Norton. Forthcoming 2017. “How home health agency’s ownership affects practice patterns.” Fiscal Studies.

Gilleskie, D.B., E. Han, and E.C. Norton. 2017. “Disentangling the contemporaneous and dynamic effects of human and health capital on wages over the life cycle.” Review of Economic Dynamics 25: 350-383.

Deb, P, E.C. Norton, and W.G. Manning. Forthcoming 2017. Health Econometrics Using Stata. Stata Press.